What can you make of this?
“The reduction in liquidity from the Fed will cause both the equity risk premium and interest rates to rise, which will continue to disproportionately impact the riskiest assets... particularly cryptocurrencies, which have no intrinsic value,” according to Jay Hatfield, portfolio manager at Infrastructure Capital Advisors.
“The reduction in liquidity from the Fed will cause both the equity risk premium and interest rates to rise, which will continue to disproportionately impact the riskiest assets... particularly cryptocurrencies, which have no intrinsic value,” according to Jay Hatfield, portfolio manager at Infrastructure Capital Advisors.
This is the part where Warren Buffett walks onstage, drops a copy of Ben Graham's "The Intelligent Investor" on the table and says, "There's really only one way to do this."
tl;dr Value Stocks are back in vogue
Well first the disclaimers. I’m not a financial advisor or crypto currency expert. What I think of his statement is that he is more or less clueless when it comes to crypto. One of the most attractive characteristics of the crypto market is the fed really has no influence and thus can’t manipulate the market to the advantage of their wall street pals. Thus rising interest rates and inflation are reasons to increase holdings of crypto not run from it. The pullback in crypto is likely caused by many things, some of which may be tax related, general political uncertainty and mostly the fact that the crypto markets are still very much in their infancy so volatility is a given.
My overall outlook for crypto at the moment is this is a good buying opportunity. Buy and hold.